According to traders, Vietnam’s January-September rice exports are estimated at 2,934 tmt, about 10% lower than the amount (3,239 tmt) exported during the same period last year. However, the rice export value increased by 7% to USD 613 million (see table 2), due to higher prices.

Asian countries remained the biggest buyers of Vietnam’s rice in Jan.-Sep. period, even though Vietnam rice exports to Asia dropped by 50 percent, due Indonesia halting imports of Vietnamese rice since the beginning of 2004. In contrast, Vietnamese rice exports to African countries were up sharply in the first nine months of 2004 to 895 tmt compared with 660 tmt exported during the same period last year. The rice export volume to Europe was also double.

Vietnam’s exports of fragrant rice are up substantially in Jan-Sept 2004, totally 40 tmt, compared to only 6 tmt exported during the entire year in 2003.

The government of Vietnam encourages exports of fragrant rice. The Ministry of Trade allowed exports of sticky and fragrant rice up to 5,000 mt each, when the rice export restriction was announced at the 3.5 mmt level in July. Post estimates that Vietnam’s exports of fragrant rice in 2004 at 50-60 tmt. Offered export prices for fragrant is currently about USD 280-290/mt (FOB basis).

Traders expect export volumes of Jasmine rice will double in 2005 because of its low export price advantage.

On May 31, the Ministry of Trade (MOT) signed a decree requesting rice exporters to register their signed rice export contracts to Vietnam’s Food Association (Vietfood). According to the MOT, the registration aims to help the rice export industry avoid uncontrolled, excessive export contracts and to stabilize paddy prices in domestic markets.

Accordingly, rice exporting companies must register their signed rice export contracts stating contract’s number, export rice amount, and delivery time with Vietfood. Customs officers can’t complete rice export procedures for rice exporters if they do not receive a notification about company’s registration from the Vietfood